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On 1 January 2022, Cow Ltd acquired all the issued shares in Green Ltd. At that date, the inventories of Green Ltd had a fair value of $30 000 LESS than their carrying amount. The inventories were sold during the year ended on 30 June 2023. The company tax rate is 30%. Required
Problem 1: The tax effect entry to be made on 30 June 2023 in relation to the inventory will be:
A . CR Income Tax Expense 9000B. CR Deferred Tax Liability 9000C. DR Income Tax Expense 9000D. DR Deferred Tax Asset 9000
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